India's top gas importer Petronet LNG is in talks with Qatar to secure delivery of some of the at least 90 liquefied natural gas cargoes delayed chiefly by the Middle East crisis, said the company's CEO A.K. Singh.
Qatar, India's largest LNG supplier, has a contract to supply Petronet with 7.5 million tonnes of the fuel annually, equivalent to about 9-10 cargoes a month.
However, 75-80 cargoes under the existing contract have been delayed so far by the war in the Middle East, Singh said, in addition to 15-16 cargoes not delivered in 2015-16 due to pricing disputes.
QatarEnergy has extended force majeure on LNG supplies until the end of this year, he added.
Although the contractual terms of the deal allow delivery of delayed cargoes in the year up to April 2029, Petronet is seeking delivery as soon as the situation normalises to meet rising Indian demand, Singh said. The deal, lapsing in April 2028, has been renewed with new terms for another 20 years to 2048.
India is considering diversifying its LNG import sources to hedge against supply disruption, Singh added.
"Price should not be the only determining factor. Security and reliability and shipping routes are also important," he said.
India wants to raise the share of gas in its energy mix to 15 per cent by 2030, and companies have signed long-term deals to meet the growing demand.
Petronet has expanded its western India-based Dahej regasification terminal's capacity to 22.5 million tonnes per year from 17.5 million tpy, Singh said, adding his company would be able to accommodate higher supplies at the facility in 2028-2029.
Most parts of the terminal have been leased to other state-run oil companies that have import contracts for about 10-12 million tpy of LNG.
However, some supplies contracted by these companies from Middle Eastern producers have also been delayed due to the disruption in the Strait of Hormuz, Singh said.
(Reporting by Nidhi Verma; Editing by Jan Harvey)